Sears Considers Selling HomeLife Stores

Sears Roebuck & Co., the nation’s No. 2 retailer, said it hired investment banker Salomon Smith Barney to explore options for its HomeLife furniture stores, including a sale. HomeLife, which operates 126 free-standing stores, is the nation’s third-largest furniture chain, with sales of about $650 million, according to Furniture Today trade magazine. Sears has said it would consider different options for the furniture chain if its business didn’t turn around. The department store operator said HomeLife made headway in its recovery. Among the options Sears is considering is selling a stake in HomeLife to a financial partner to help fund the chain or create a partnership with another company. It could also keep the business. Sears added chains such as HomeLife and its auto parts stores to expand beyond shopping malls and free up space in its mainstay department stores. Twenty-five HomeLife stores are still located within Sears department stores.